Midterm Exam 4 Flashcards by Delia Archer

Private Mortgage Insurance

a.
Protects the lender against borrower default

b.
Protects the brokers from being sued after the transaction closes

c.
Protects the buyer from future losses in equity due to market fluctuations

d.
Protects the seller in case of judgements that arise after the sale

a.
Protects the lender against borrower default

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Where would you find the written laws that deal specifically with the Arizona Department of Real Estate?

a.
Arizona Attorney General Articles

b.
The Arizona Revised Statutes

c.
The Policies and Procedures Documents

d.
Arizona Department of Real Estate

b.
The Arizona Revised Statutes

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The biggest reason why banks don’t typically lend money on co-ops is due to what?

a.
The prices are not determined by fair market

b.
Co-Ops are rare

c.
An owner must have a credit score of 720 or higher

d.
Owners have a proprietary leasehold interest in the building

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What type of estate was given to Pat and Kat by their parents who are the legal owners and allows Pat and Kat to remain there as long as they abide by the limitations set by the parents

a.
Fee simple conditional

b.
Fee Simple Qualified

c.
Fee simple

d.
Fee Simple Determinable

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During escrow, the buyers main obligation is to

a.
Close on the escrow as per contract

b.
Investigate title defects

c.
Obtain homeowners insurance

d.
Provide funds to purchase

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An escrow company finds a cloud on title during their title search, which they then bring to the attention of all parties involved. Which of the following is not a possible cloud on title?

a.
IRS tax lien

b.
Gaps in ownership

c.
Unrecorded easements

d.
Unsettled mechanics liens

c.
Unrecorded easements

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Who would be entitled to a commission earned for an out of state commercial referral?

a.
The broker of the referring agent who was duly licensed in the State

b.
The agent in the State who sent the referral

c.
Out of State real estate agent who is duly licensed in that State

d.
The agent in the State who is duly licensed in that state who sent the referral

a.
The broker of the referring agent who was duly licensed in the State

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Who has been granted the power to create and enforce laws that affect Real Estate in Arizona?

a.
Real Estate Advisory Board

b.
Arizona Department of Real Estate Commissioner
Correct

c.
States House of Representatives Real Estate Members

d.
States Attorney General

b.
Arizona Department of Real Estate Commissioner
Correct

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When you took a listing on a home in Casa Grande, you found out that the solar panels on the roof of your clients home must be transferred to the new owners because they are

a.
Fee Simple Absolute

b.
Leasehold

c.
Freehold

d.
Appurtenant

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A seller would want to be able to prove that they have a Marketable Title in order to show what?

a.
The ability to transfer their real property to the escrow company

b.
The ability of the escrow company to provide a title insurance policy

c.
The ability for the general public to view recorded liens on the property

d.
The ability of the sellers or agent to market the property to others

b.
The ability of the escrow company to provide a title insurance policy

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The length of term for serving as the Commissioner for the State of Arizona Department of Real Estate is how long?

a.
2 Years

b.
Serves at the Governors pleasure

c.
Until a new Governor is elected

d.
5 Years

b.
Serves at the Governors pleasure

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In the State of Arizona, who can determine the mental capacity of a grantor when it comes time to transfer, sell or deed real property?

a.
Special Counsel

b.
Courts

c.
Heirs to the Grantor

d.
Grantor Attorney

b.
Courts

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Laws of Descent would be applied when determining what?

a.
Who would claim ownership after the death of the legally recognized owners

b.
What must be agreed upon when taking title as Joint Tenancy

c.
Ownership rights if more than one owner in a property

d.
Possession Rights

a.
Who would claim ownership after the death of the legally recognized owners

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Which of the following would be an example of Personal Property

a.
Rolling Garage shelves

b.
Landscape lighting

c.
A Satellite Dish mounted on the roof

d.
A courtyard water fountain

a.
Rolling Garage shelves

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A fee simple absolute estate is an estate where it is almost impossible as long as the owner abides by all legal rights to be forfeited or given up. This is because of

a.
Indefeasible fee state

b.
Action Estate

c.
Defeasible fee estate

d.
Determinable Estate

a.
Indefeasible fee state

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A lumber yard didn’t get paid from the framing contractor who was hired by the homeowner. This contractor has the right to file a claim with what time period?

a.
90 days from when the material was dropped on the site

b.
90 days after the invoice was first sent

c.
90 days from the date the work started

d.
120 days after the materials were ordered

a.
90 days from when the material was dropped on the site

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Which of the following most accurately describes the Title in real estate?

a.
A document used to show liens on a property

b.
The direct proof of ownership

c.
Evidence that the seller has the capacity to negotiate the sale

d.
What rights one has with the property

By dying intestate, what happens to the real property in Arizona?

a.
The Statutes of Descent will be followed

b.
Whatever is in the recorded will

c.
The estate would revert to the State automatically

d.
It goes to the owners remaining partner automatically

a.
The Statutes of Descent will be followed

What is the maximum amount a single member from the general public can recover from The Recovery Fund

a.
$40,000

b.
$25,000

c.
$90,000

d.
$30,000

A civil penalty can be assessed against a licensed agent not to exceed how much money?

a.
$5,000

b.
$2,500

c.
$10,000

d.
$1,000

During a bitter legal battle over property line disputes, a neighbor serves papers on the owner of the property in dispute. This is known as

a.
Conveyance of suit

b.
Being induced to act

c.
Construed to act

d.
Being provided actual notice

Upon the finalization of the divorce, a single woman on her own purchases a new condo in a high rise complex. The ownership would probably be recorded as “an unmarried woman taking title __________.”?

a.
Tenancy in Common

b.
Single Tenancy

c.
Community Property

d.
In Severalty

What would happen if the Recovery Fund fell below $600,000 at any point within a year?

a.
The state would borrow money from the general operating funds account

b.
Any and all licensed agents who are renewing will pay additional Monies

c.
The Recovery Fund will continue paying out but only on cases below $10,000

d.
Any injured party would have to wait for the Recovery Fund balance to increase

b.
Any and all licensed agents who are renewing will pay additional Monies

The amount of time allowed to notify the AZ Dept of Real Estate that you have passed the State Real Estate Exam is how long?

a.
365 days

b.
90 days

c.
120 days

d.
30 days

a.
365 days

Which of the following would be an example of personal property? a. Landscape lighting b. A satellite dish mounted on the roof c. Rolling garage shelves d. A courtyard water fountain

c. Rolling garage shelves

The main purpose of both the Commissioner and the Department of Real Estate is to a. To maintain direct oversight of all real estate agent activities b. To enforce rent control on lower income housing c. Protect the General Public d. To oversee the quality of building and housing

c. Protect the General Public

A REIT must pay out how much of its income in the form of dividends? a. 75 b. 90 c. 100 d. 50

b. 90

A homeowner who due to unfortunate circumstances has lost most of his assets to the attorneys who are suing him. Which asset is protected in Arizona due to the homestead acts? a. The first $500,000 in equity in his primary residence if he is married b. A rural residence only c. Any residence in Arizona d. The first $150,000 in equity in primary residence

d. The first $150,000 in equity in primary residence

Governments can levy liens against a deceased person's estate. This is known as a. Creditor Liens b. Voluntary c. Recorded at time of death d. Statutory

d. Statutory

By properly signing a _______________ , a spouse is legally separating themselves from a community property asset. a. Non-Interest Deed b. Disclaimer Deed c. Community Property Waiver Agreement d. Quiet Release

b. Disclaimer Deed

When a tenant reserves the rights to a property but only for a limited time, where specifically they can remain in the property for the duration of someone else's life. This potentially could be an example of a. Estate on behalf b. Grantor's interest c. Estate por autre vie d. Estate in Reversion

c. Estate por autre vie

During a closing, which party would pay for the escrow fees due to the statutes? a. The agreed upon party identified in the contract b. Buyer would pay for the close of escrow c. Both parties would split it according to the statutes d. There are no statutes that state who would pay for escrow

d. There are no statutes that state who would pay for escrow

A change in zoning directly across the street would be a potential a. Potential Encumbrance b. Monetary Encumbrance c. Non-Monetary Encumbrance d. Zoning Encumbrance

a. Potential Encumbrance

When the IRS is owed money and takes it from personal property, this is referred to as a a. Levy b. Impound c. Collection d. Repossession

a. Levy

The IRS has the power to lien both personal and real property. This is what type of encumbrance? a. General but involuntary b. General, Involuntary, Statutory c. General, specific, involuntary d. Specific but involuntary

b. General, Involuntary, Statutory

Which one of the bundle of rights would allow someone else to buy their land in the future for a set price now? a. Disposition b. Control c. Possession d. Enjoyment

a. Disposition

The Arizona State Constitution has _____ total Articles? a. 26 b. 32 c. 20 d. 30

d. 30

What recourse does an HOA board have against homeowners who do not pay their assessments? a. Placing a lien on the property b. Placing a judgment against a person's personal property c. Placing a notice of intent to remand notice on title d. Placing an adverse possession notice on title

a. Placing a lien on the property

How does "vacation ownership" differ from a "timeshare"? a. Vacation ownership can not be banked or traded b. Vacation ownership is illegal in the State of Arizona c. Vacation ownership is a license to use d. Both must use an attorney to sell or transfer ownership

c. Vacation ownership is a license to use

The highest and most desirable type of property ownership is a. Fee Simple Absolute b. Grantor's Estate c. None of the above d. Common Estate

a. Fee Simple Absolute